Ongoing ICO Issued With Cease-and-Desist Order by Vermont Regulators

Regulators from the U.S. State of Vermont issued a cease-and-desist order to a company behind an ongoing initial coin offering (ICO).

The Vermont Department of Financial Regulation revealed on Monday that it was issuing a ceast-and-desist to LevelNet, a company based in Irving, California for alleged violations “related to the Vermond Uniform Securities Act” and instructed it to stop selling tokens related to its cybersecurity platform.

According to its website, LevelNet was able to raise roughly $752,000 during its tokensale.

The move by the regulators follows a broader crackdown on crypto-related investment schemes aptly called “Operation Cryptosweep”.

The North American Securities Administrators Association (NASAA) said that “nearly 70” inquiries have been launched in recent months.

“The rapid rise of Bitcoin has made Main Street investors aware and interested in cryptocurrencies and ICOs,” said Michael Pieciak, a commissioner for the Vermont Department of Financial Regulation.

Pieciak added that:

“Although many are legitimate offerings that are fully compliant with law – many are not – and this order serves as a good reminder to exercise caution when considering investing in these products.”